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Joined: Jan 2004
Posts: 615
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Since when is it dishonest to "hide" overhead in your price??? What if I told the customer that the other guys are "hiding" their price of gas in their "service charge"?
'But we are up front and honest and will do this and that and the other guy won't'??? Well if you ask me, unless you know specifically who this other guy is, and specifically what he will and won't do and what he is charging, your approach sounds less honest to me. I'm hearing a spin that sounds a lot more shady than "free estimate".
The implied understanding of free estimate is that it will be free if they decide not to have the work done, it says nothing about figuring or not figuring it into the cost.
Don't get me wrong, I hate the free estimate to the tire kicker too, but to all you "no free estimate" guys, where do you draw the line between "free estimate" and "competative bid" which is usaully just as free, is it not?
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Joined: May 2005
Posts: 706
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I understand the expense to me of "free" estimates, but something I come back to is...
2 of my top 5 all-time best clients started with free estimates. Maybe they are 1 in 50 or 1 in 100, but I'm glad I have them.
By the way, my top, number one, all-star client came from wiring a Habitat For Humanity home for "free". Work with them paid for my daughter's college expenses.
Dave
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Joined: Dec 2004
Posts: 1,064
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Would seem to me after reading some responses from various folks, that the people who don't like the idea of free estimates/competitive bidding are the guys who might of spent alot of money joining organizations/paying business consultants who told them this practice is not a smart business move.
Maybe, maybe not.......
As to the replies to "it is a waste of time"
could it be you need help in selling customers?
Some of you I think are looking at this the wrong way.
Let's say your competition charges $39 for and estimate/trip charge/service fee/BS charge. And let's assume you don't charge anything.
If people are more willing to call someone that has no charges up front, that should be an open invite to you as a potential sale waiting to happen. The next goal is to make that sale happen. Maybe this is where the guys who charge a fee faulter, they can't sell, so they get something out of the call anyway.
Maybe, Maybe not...
This may/may not apply to all, but I am confident this applies to some, they just won't admit to it....
Landon, if you are telling customers of how they are being ripped off by the free estimate guys, are YOU being honest?
I haven't ripped anyone off, and I do free estimates. And I think I am very sucessful in what I do.
(by the way, Welcome to the ECN Forum)
Dnk.........
[This message has been edited by Dnkldorf (edited 08-30-2005).]
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Joined: May 2005
Posts: 706
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I'll be the first to confess that my sales skills are far behind my technical skills. I'm also tired of the time and effort needed giving free estimates to people who often have no intention of hiring ANY EC to do the work. My feelings on this vary daily, but I'm ready to thin out the non-referred shoppers.
Dave
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Joined: Apr 2005
Posts: 39
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Dnk,
I don't belong to any orginization nor do I spend thousands on consultants. I charge a dispatch fee because thats how I choose to operate our business. We stictly do only service work. Congats to you for having a succesful business as well.
Tiger,
We use Charlie Greer to train our techs for selling. The DVD series is well worth the investment.
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Joined: Apr 2005
Posts: 197
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We offer free quotes to existing customers that have a track record with us. That is, for a regular customer where we get 90%+ of the quotes. We simply add that cost to the job. We don't do this as a hobby, we actually try to make a living from what we do. Offering anything for "free" violates that general concept. I tried to think of the last "free" service or product I was offered.... then I remembered, no such thing as free.
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Joined: May 2005
Posts: 706
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Often a business will offer something free as a "Lost Leader" to get more traffic. Free coffee, or a full rebate sale item. The key, I think is knowing how to limit the freebie. Obviously you can't provide free coffee to 25,000 people if they aren't buying.
I recently had two calls:
The first was a lady who wanted a free estimate, and asked two or three questions to make sure it was free. The estimate was a complete waste of time.
The next was a lady who got my name from BBB online and said she was "going to do it right this time". I told her some charges to prequalify & it was no problem. No free estimate, no wasted time.
Usually people say things that let you know up front what kind of client they'll be.
Dave
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Joined: Jun 2004
Posts: 1,273
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Free estimates are a symptom of weak market position.
The big three auto companies are unable, right now, to stop their free estimates -- 'employee discount pricing.' For them as for us it is blood on the floor.
A stronger market is the only cure. The big three are too big for their market ‘niches.’
We, however, <i>can<i/> move into stronger markets.
One must ‘spoil’ best customers with service – for a price – and deliberately seek out prospects that resemble these best customers. All prospects are clearly not equal.
Best Customer can mean many things. For McDonalds their best customer is a repeat buyer satisfied with the limited menu that they are geared to produce. High volume to a set formula is their game.
For most residential service contractors the game is:
Same old needs = same old solutions > Flat Rate Pricing > Rapid fire bids > Averaging out the results > Saving on bid overhead.
For the ultimate in bid overhead savings:
Just pull dimensions over the phone – move your finger down your flat rate book and quote’em. Leave an opener for contract adders….
Have the customer send a picture via his cell phone to your computer screen. All of your best customers have or will soon have such cell phones.
Why visit at all?
Tesla
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Joined: Jan 2003
Posts: 1,429
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Tesla,
"Free estimates are a symptom of weak market position."
___________________________________________
Well said, when your in a weak position, you will try everything, from door hangers, to free estimates, spending valuable time grinding down, whatever assets you may have left, putting you in an even weaker position.
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Joined: Sep 2005
Posts: 13
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Right
I think the wrongest thing to do if the market is slow to make it worse by driving to any possible location whereever,whenever for nothing.
Especially in times like these it is essential to prequalify your customers already on the phone.
If they are not willing to pay the dispatch fee they sure will not pay your rates for your services.
The time spend on driving to jobs and writing free estimates will not allow you to focuss on the customers that are willing to pay.you could have cashed in on that job ..but....sorry was busy giving free estimates.......
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Posts: 44
Joined: July 2013
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